Key Points
Bitcoin ATMs (or BTMs) allow users to buy and sell bitcoins (and sometimes other cryptocurrencies) using cash or a debit card.
If you are new to crypto, you will need to set up a crypto wallet before using a Bitcoin ATM.
Bitcoin ATMs are easy to use, but they charge fees that are usually much higher than online alternatives. Fees can sometimes reach up to 20% per transaction.
What Is a Bitcoin ATM?
Have you ever wanted to know how to buy bitcoins using cash? That's where Bitcoin ATMs come in!
Bitcoin ATMs are exactly what they sound like—automated teller machines for bitcoin (BTC). They’re physical machines that are usually found in public places. Bitcoin ATMs allow you to buy or sell BTC (and sometimes other cryptocurrencies) for cash or a debit card. They function like traditional bank ATMs, but they connect you to the exciting world of crypto rather than your regular bank.
How Do Bitcoin ATMs Work?
Bitcoin ATMs are pretty straightforward. To buy bitcoin, you insert cash into the machine, scan your wallet’s QR code, and the ATM will automatically transfer BTC to your wallet address. We’ll cover the steps in more detail below, but keep in mind that you’ll need to set up a crypto wallet if you haven’t already.
Depending on the location, Bitcoin ATMs may offer both buying and selling services. However, some Bitcoin ATMs will only allow you to buy, while others will only allow you to sell.
If the ATM allows you to sell bitcoin, you can do so by sending coins from your wallet to the address provided by the machine. Once the transaction is confirmed on the blockchain (which may take a few moments), the ATM will release the cash. Make sure you know whether the ATM you are using supports selling.
What's the Consideration? Cost!
Bitcoin ATMs are useful, but they don’t come without a fee. Most crypto ATMs come with hefty fees. They can charge anywhere between 7% and 20% per transaction, which is much higher than what you would pay at an online exchange.
In comparison, online crypto exchanges typically charge between 1% and 4% for bank deposits or credit card purchases. At Binance, deposit fees can range from 0% to 2% depending on your currency, location, and payment method. If Binance P2P is available in your area, you can easily buy and sell crypto online with very low fees.
So, while using a Bitcoin ATM is quick and easy, the fees are much higher. Some machines also have minimum and maximum transaction limits. For example, you may be required to buy a minimum of $10 worth of bitcoin or be subject to a maximum purchase limit of several thousand dollars per transaction. Always check these limits before you start!
You should also choose an ATM with a good up-to-date rating and that displays the owner’s contact details, provides a price feed, and a clear fee schedule. There are counterfeit machines out there, so this data can help you evaluate their authenticity.
Where are Bitcoin ATMs?
The number of ATMs has increased as Bitcoin has become more popular. Currently, there are tens of thousands of crypto ATMs around the world, mostly located in the US, but also in other countries.
You’ll often find them in locations like gas stations, shopping malls, and airports. If you’re looking for one, you can use an online service like Coin ATM Radar to help you find a Bitcoin ATM near you.
Pros and Cons of Bitcoin ATMs
Pro
Easy to use: Suitable for beginners who want to explore crypto without dealing with online exchanges.
Cash friendly: You can easily buy bitcoins with cash without using a bank account.
Relatively fast: No need to wait for days like with some bank transfers.
Against
High costs: Convenience comes with costs that are often much higher than online alternatives.
Limited availability: While it is becoming more common, you may still have trouble finding it near you depending on where you live.
Security risks: Be aware. Like any machine that handles money, Bitcoin ATMs can be targets for theft or fraud. There are also fake machines in circulation.
How to Use a Bitcoin ATM?
Want to give it a try? Here's a quick guide on how to use a Bitcoin ATM:
Get a crypto wallet: You will need a wallet address to receive bitcoin. Make sure you have a wallet that can generate QR codes (e.g. Binance App or Trust Wallet).
Find a Bitcoin ATM: Use an online finder like Coin ATM Radar to find the nearest machine. Be wary of fake machines. Choose an ATM with a good up-to-date rating and clear information (owner contact details, price feed, fees, etc.).
Verify your identity: Some machines may ask for your phone number or photo ID. In some cases, this depends on the amount of bitcoin you are buying or selling.
Scan your wallet's QR Code: When you're ready to buy, scan your wallet's QR code to let the machine know where to send your bitcoins.
Make a payment: Follow the on-screen instructions to insert cash or swipe your debit card for the amount you want to spend.
Confirm the transaction: Once the blockchain confirms the transaction, your bitcoins will appear in your wallet. You may have to wait a while depending on the network's busyness.
Should I Use a Bitcoin ATM?
It depends. Bitcoin ATMs can be a great option for those who want a simple way to buy bitcoin with cash. However, keep in mind that there are security risks, and the high fees can make your purchase much more expensive.
For most people, the convenience of a Bitcoin ATM is not worth the much higher fees and potential risks. In fact, it is cheaper and safer to buy your first crypto through a reputable exchange like Binance, which offers a variety of payment methods in a variety of currencies.
Further Reading
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